An Act to amend the Income Tax Act (S.C. 2016, c. 11)
Full Document:
Assented to 2016-12-15
8 (1) Paragraph 186(1)(a) of the Act is replaced by the following:
(a) 38 1/3% of all assessable dividends received by the particular corporation in the year from corporations other than payer corporations connected with it, and
(2) The portion of subsection 186(1) of the Act after paragraph (b) and before paragraph (c) is replaced by the following:
exceeds 38 1/3% of the total of
(3) Subsections (1) and (2) apply to taxation years of a corporation that end after 2015, except that, for taxation years that end after 2015 and begin before 2016
(a) in the application of subsection 186(1) of the Act, as amended by subsections (1) and (2), to amounts described in paragraphs 186(1)(a) and (b) of the Act that were received by the corporation in the year and before 2016, the references to “38 1/3%” in that subsection 186(1) are to be read as “1/3”; and
(b) amounts deducted by the corporation for the year under paragraphs 186(1)(c) and (d) of the Act
(i) are deemed to have been deducted in respect of amounts described in paragraph 186(1)(a), as enacted by subsection (1), and paragraph 186(1)(b) of the Act that were received by the corporation in the year and after 2015, and
(ii) to the extent that the amounts so deducted exceed the amounts referred to in subparagraph (i), are deemed to have been deducted in respect of amounts described in paragraph 186(1)(a), as enacted by subsection (1), and paragraph 186(1)(b) of the Act that were received by the corporation in the year and before 2016.
9 (1) The definition TFSA dollar limit in subsection 207.01(1) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:
(c) for 2015, $10,000; and
(d) for each year after 2015, the amount (rounded to the nearest multiple of $500, or if that amount is equidistant from two such consecutive multiples, to the higher multiple) that is equal to $5,000 adjusted for each year after 2009 in the manner set out in section 117.1.
(2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2016.
10 (1) The definition appropriate percentage in subsection 248(1) of the Act is replaced by the following:
- appropriate percentage
appropriate percentage, for a taxation year, means the lowest percentage referred to in subsection 117(2) for the taxation year; (taux de base pour l’année)
(2) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
- highest individual percentage
highest individual percentage, for a taxation year, means the highest percentage referred to in subsection 117(2) for the taxation year; (taux d’imposition supérieur pour l’année)
(3) Subsections (1) and (2) apply to the 2016 and subsequent taxation years.
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